Is Anyone Not Going To Empty Their Accounts When The Banks Open?

[DangerUXD]

http://www.bbc.co.uk/news/world-europe-21893911
Regardless of what happens/promises etc, surely everyone is going to move their money out when they open so is the Cypriot banks crashing an innevitability?

[emmie]

surely they won't have enough money in their banks to accommodate everyone, not suggesting the people affected shouldn't do it, but can't see the banks being able to cough up that much...

[DangerUXD]

exactly em10, that's the point. As a general principle in the banking world, everyone wants their money at once = curtains.

[emmie]

if they did then it would be curtains and goodnight surely.

[Sqad]

.......uncharted territory Danger..........I have no idea what will happen.

A bailout will be arranged, don't worry......either by EU, Russia or dare i say it China.

[DangerUXD]

that's the point I'm making em10, you and I and any sensible person would want out so really is the collapse of those banks innevitable?

[emmie]

whichever way you look at this the ordinary Cypriot is over a barrel.

[emmie]

someone asked me advice about Northern Rock some years back, and i told him to take his money and run, which he did, x

[jake-the-peg]

I believe the Cyprus parliament is passing emergency legislation to limit withdrawals.

http://rt.com/business/cyprus-decide-emergency-legislation-save-financial-system-651/


Otherwise yes there would be a crash

[whiskeryron]

Is any bank really safe ?

WR.

[emmie]

BBC Gavin Hewett piece .

Whatever the outcome, the legacy will be one of bitterness. I have seen anti-German posters and heard anti-German rhetoric in Greece, Spain, Italy and Portugal. But never has it been so open as in Cyprus.

Even if the Germans are right - and the Cypriot banking sector needs cutting in half - they are perceived as bullying outsiders.

This crisis has revealed yet again the faultline at the heart of the euro. Economic and monetary union has yoked together very different economies and cultures.

The stress of trying to blend them together is putting the European project under severe strain. Some economies are in a depression and the political fallout from this still lies ahead.

[jake-the-peg]

Cypriots are looking for someone else to blame - I guess it's only natural

But what have they really got to blame the EU and the Germans for?

They've based an economy on dodgy banking and it's gone pear shaped - Now it's the Germans fault for not bailing them out in a painless enough manner?

Really?

[emmie]

would you like someone to come along and dip your wallet, same thing isn't it, how can it be possible for the Cypriot government to take monies out of the people's accounts, if that happened here there would be full scale riots.

[jake-the-peg]

It might very nearly have happened here - or worse.

If Gordon Brown had just turned to Northern Rock and said 'You're responsible for your own business - if you can't hack it you're on your own' they'd have gone down depositors would have lost their money and borrowers would have had to scramble to find other lenders as creitors foreclosed on assets.

Shoring up the banks was very expensive and very brave

[emmie]

but what was proposed was taking ordinary savers money out of their accounts, how can that be right, like saying we know you are not the ones who caused the problem, but you have to pay all the same. How is that remotely right or fair.

[emmie]

expensive for the taxpayers here you mean

[Gromit]

They can blame the EU to a certain extent. Cyprus bought Greek Government Bonds which were then devalued by the EU. Their investments were decimated. And every other EU bailout has not involved a raid on everyday savers. So the perception is one of not a level playing field.

A deal will be done. Small savers might be spared the levy raid and the larger despositors (Russians mostly) will bear the brunt. The Cyprus banks will be split and the toxic parts separated. The remains will be merged into just a couple of viable banks.

Cyprus will remain in the EiroZone and EU.

[emmie]

and so the party goes on, no matter how damaging

[New Judge]

"Cypriots are looking for someone else to blame - I guess it's only natural

But what have they really got to blame the EU and the Germans for? "

You keep suggesting that none of this is the fault of the EU, jake. I asked in an earlier question whether or not you believed that Cyprus (and Greece) would be in these dire straits had they not joined the EU and (more significantly) had they not adopted the euro. I know none of us can say for sure but I am very heftily inclined to believe that they would not.

[emmie]

and i as they say, are inclined to agree with you. ^

[Noth43]

Me too.